Realizing that people respond to rewards isn’t a difficult notion to grasp. Determining how much to reward, to whom, and when, however, are complex decisions organizations contend with to motivate employees and retain high performing individuals in a competitive market. In ERI’s latest white paper, “Principles of Merit Pay,” Research Manager Lyle Leritz, Ph.D., draws on history, theory, and common practice to outline the basics of a successful merit-based system.

In addition to covering three models of merit pay, Leritz discusses the importance of measuring performance, communicating increases, meeting salary increase budgets, and timing the distribution of performance-related pay.

A full listing of ERI's free research white papers is available on the left-hand side of our home page.